A woman walks past an electronic stock board showing Japan's Nikkei 225 index at a securities firm Tuesday, May 30, 2017, in Tokyo.Eugene Hoshiko/The Associated Press
European stocks fell and the euro slipped with most currencies against the dollar after investors were reminded of a few of the challenges still faced by the world's biggest single market. Oil joined a wider selloff in commodities.
The Stoxx Europe 600 Index declined a fourth day as ECB President Mario Draghi's dovish comments to the European Parliament weighed on banking shares.
A report that Greece could opt out of its next bailout payment sank to the euro, though it pared some of the drop after the government later issued a denial. Italian bonds continued to underperform as traders digest the prospect of an earlier-than-expected election.
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The pullback across many assets serves as a reminder that, while equity benchmarks across the world have posted repeated records this year, potential headwinds to the global growth story remain and investor concern lingers. Elections in the U.K., Germany and Italy are looming as Brexit negotiations begin, while in the U.S. President Donald Trump's ability to implement spending and tax-cut plans is far from certain.
Fed Bank of St. Louis President James Bullard said on Tuesday the new administration will need to fulfill the expectations that have driven the stock market higher.
"Washington does have to deliver at some point," Bullard said in an interview on Bloomberg TV in Tokyo. "That is a concern going forward, whether the honeymoon period would end at some point and maybe the reality of American politics would settle in."
Here are some of the key events coming up:
Euro-area data this week may show the strongest economic confidence in a decade on Tuesday. The preliminary headline inflation rate for the region will come on Wednesday.
France will release figures on consumer confidence and economic output, while Germany and Spain also report on inflation indicators.
Fed speakers are out and about as the FOMC's June 13-14 meeting approaches. Lael Brainard and Robert Kaplan will be in New York on Tuesday and Wednesday, respectively.
The U.S. jobs report Friday may bolster the case for a rate hike, with a gain of 185,000 positions expected.
Brazil's central-bank decision on Wednesday will probably see a cut of 75 to 100 basis points from the current 11.25 per cent, according to economists.
China's May manufacturing PMIs on Wednesday might indicate that the nation's 2017 growth has already peaked.
The EIA is due to release its monthly supply reports Wednesday.
Asia
Japanese stocks ended higher despite a stronger yen, with the Topix reversing earlier losses. Data showed Japan's jobless rate stayed at the lowest in more than two decades last month, but household spending remained in a slump. Hong Kong and China markets were shut for a holiday.
Currencies
The euro fell 0.2 per cent to $1.1142 as of 10:07 a.m. in London. The British pound added 0.1 per cent.
The Bloomberg Dollar Spot Index climbed 0.1 per cent.
The yen strengthened 0.3 per cent to 110.97 per dollar.
The rand retreated 0.8 per cent, extending losses for a second session after President Jacob Zuma survived a bid by some members of his party to oust him.
Stocks
The Stoxx Europe 600 Index declined 0.2 per cent, with banks sliding 0.7 per cent.
Futures on the S&P 500 Index fell 0.1 per cent. The underlying gauge closed at a record high on Friday.
Commodities
Gold was 0.3 per cent lower at $1,264.55 an ounce.
West Texas oil fell 0.3 per cent to $49.67 per barrel; prices swung last week following the agreement by OPEC and its allies to extend cuts by nine months.
Bonds
The yield on 10-year Treasuries declined one basis point to 2.24 per cent.
Italy's benchmark bond yield gained three basis points after climbing seven basis points on Monday.